Statement I.The perfect competitor is a price-taker,not a price-maker.
Statement II.The dividing line between many and few is 100.

Question

Quizplus · Accepted Answer

Statement I is true. In a perfectly competitive market, there are many small firms that cannot influence the market price. Therefore, they have to accept the prevailing market price and produce accordingly. Thus, they are price-takers, not price-makers.
Statement II is false. The dividing line between many and few firms in the market is not fixed, and it varies by industry and market structure. Therefore, there is no general rule that applies to all markets.